You Can Now Request NYC Taxis Through Uber

Uber, facing driver shortages and a rise in food delivery demands during the pandemic, will feature New York City taxis on its app, a collaboration that would have seemed impossible before, as both sides fiercely competed for the same customers.

With longer waits for Uber rides due to the driver shortage, this partnership will increase ride availability and connect NYC cab drivers to a vast audience of commuters who use the Uber app.

Signs have emerged that the strain between Uber and taxi services is easing as Uber aggressively expanded its profitable food delivery sector and required more delivery drivers.

Throughout the pandemic, Uber’s food deliveries surpassed the number of rides, with millions staying home. In the last quarter of 2021, gross bookings for Uber’s delivery services reached $13.4 billion, compared to $11.3 billion for Uber rides.

The agreement announced on Thursday occurs against the backdrop of various cities moving to regulate the rapid expansion of Uber and other app-based ride services, including New York City, which implemented a temporary halt on new ride-hailing service licenses in 2018.

New York City stands as the largest market for Uber in the United States.

The New York City Workers Alliance, representing taxi drivers and critical of Uber and similar apps, announced it would advocate for negotiations.

“After its business model has failed to shield drivers from drops in ridership and rising fuel costs, Uber is returning to its origins: yellow cabs,” stated Bhairavi Desai, executive director of the NYCWA, in a prepared statement on Thursday.

The New York City Taxi and Limousine Commission expressed on Thursday its ongoing interest in tools that can enhance economic opportunities for drivers.

“We are thrilled about any proposal that enhances the connection between passengers and taxis, and we look forward to understanding more about this agreement between Uber and the taxi apps to ensure it aligns with TLC regulations,” stated Ryan Wanttaja, acting commissioner.

An industry analyst closely monitoring Uber described the union of longtime rivals as “pure genius.” Uber was facing a shortage of drivers in New York City, while taxi drivers struggled with reduced business due to the rise of ride-hailing apps.

“I believe they’ve recognized their mutual need for one another in the short term,” commented Bill Selesky, senior analyst at Argus Research.

Uber Technologies Inc. has integrated taxi drivers globally into its platform over the past few years. In Spain, the company has included taxis from Madrid, Málaga, Valencia, and Barcelona. In Colombia, it partnered with TaxExpress, which boasts over 2,300 active drivers, with half of all Uber taxi rides in Latin America coming from this collaboration. Additionally, Uber has established ties with taxi software and fleet operators in Austria, Germany, Turkey, South Korea, and Hong Kong.

In New York City, Uber is collaborating with technology platforms Creative Mobile Technologies and Curb to eventually make all NYC taxi cabs accessible via its app.

Anyone using the Uber app will have access to thousands of yellow taxis operating on the CMT/Arro platform. Taxi drivers will see fares generated by Uber on their driver screens, which they currently use to handle e-hails from the Arro taxi app.

“Uber has a longstanding tradition of collaborating with the taxi industry to offer drivers additional earning opportunities and provide riders with more transportation options. Our taxi partnerships vary globally, and we’re thrilled to collaborate with taxi software companies CMT and Curb, which will benefit taxi drivers and all New Yorkers,” stated Andrew Macdonald, senior vice president of Mobility and Business Operations at Uber, in a prepared statement.

Creative Mobile Technologies announced Thursday that taxi drivers on its platform, which includes the Arro taxi app, will gain access to Uber’s customer base, allowing them to increase their trip volume and revenue.

Creative Mobile indicated that a beta version for taxis will launch this spring and be available to the public by summer.

Curb, which provides a ride-hailing app for licensed taxis and for-hire vehicles in North America, mentioned that the new agreement with Uber will commence in New York City, with plans to expand to its nationwide network in the coming months.

Drivers using the Curb platform will be able to receive and accept Uber trip requests directly through their existing in-vehicle systems, alongside Curb app requests and traditional street hails.